AWE Updates on its Upstream Development Projects in Australia, Indonesia

Australia's independent oil and gas company AWE Limited provided Wednesday an update on its development projects in Australia and Indonesia during the first half of the 2104-2015 financial year that ended Dec. 31, 2014.

Work on the heavy lift phase of the BassGas Midlife Enhancement (MLE) Project in the Bass Strait in T/L1 and T/RL1 licenses was completed successfully and under budget. Next up will be tie-in and commissioning of the gas compression and condensate pumping modules in mid-2015, while drilling of two development wells for the MLE project is planned later this month.

In response to the current low oil price environment, AWE has prioritized two gas projects, which have the potential to significantly increase production and revenue in the coming years, for fast track development.

One of these projects involved the Waitsia and Senecio gas fields in the onshore Perth Basin, Western Australia, which are estimated to hold a combined gross 360 billion cubic feet (Bcf) in 2C Contingent Resources with significant upside potential of 1.3 trillion cubic feet (Tcf) in 3C Contingent Resources.

AWE will undertake conventional flow testing and appraisal drilling of the Waitsia gas field over the next few months. Meantime, flow testing of the Senecio-3 discovery well has commenced and good progress is being made on preparations for the Waitsia-1 and 2 appraisal wells. The firm is targeting early production through existing facilities and gas marketing work has commenced.

Over in Indonesia, the Plan of Development for the Lengo gas field, located offshore East Java, was approved by the government. Field operator KrisEnergy is preparing to start formal negotiations for gas sales agreements and the project is rapidly gaining momentum. The Lengo field is estimated to contain gross 2C Contingent Resources of 200 Bcf of gas.

Development activity is also progressing at the Ande Ande Lumut (AAL) oil project in the North West Natuna production sharing contract (PSC) offshore Indonesia, with government approval received for the wellhead platform and floating production, storage and offloading (FPSO) tender processes. AWE said that pre-qualification and contracting activity is planned for this year.


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